NTPC, REC and SJVN Fined Over Rs 59 Crore by BSE and NSE for Non-Compliance with SEBI Listing Regulations

NTPC, REC and SJVN fined over Rs 59 Cr combined by BSE and NSE for non-compliance with SEBI listing regulations. Companies seek waivers citing government control over board appointments.

Updated: 27 Aug 2026 • 10:19 am

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NTPC, REC and SJVN Fined Over Rs 59 Crore by BSE and NSE for Non-Compliance with SEBI Listing Regulations

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NTPC, REC, and SJVN have been fined a combined total of over Rs 59 crore by the BSE and NSE for non-compliance with SEBI listing regulations. The three public sector power and financing companies are seeking waivers from the penalties, citing government control over their board appointment processes as the reason for the compliance gap.

NTPC, REC, and SJVN, three prominent public sector companies in the power and infrastructure financing space, have been fined a combined total of over Rs 59 crore by the BSE and NSE for non-compliance with SEBI's listing regulations. The exchanges have levied these penalties for what has been identified as non-adherence to specific corporate governance requirements under the Listing Obligations and Disclosure Requirements (LODR) framework.

All three companies are seeking waivers from the imposed penalties, citing government control over their board appointments as the underlying reason for the compliance gap.

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Why Were NTPC, REC and SJVN Fined?

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SEBI's LODR regulations mandate specific requirements for listed companies regarding board composition, including the proportion of independent directors and other governance standards. Public sector undertakings (PSUs) like NTPC, REC, and SJVN often face unique challenges in meeting these requirements because board appointments, including independent director nominations, are frequently subject to government approval processes that can be slower or structured differently from private sector norms.

This structural tension between government control over PSU board appointments and SEBI's listing regulation requirements has been a recurring theme for public sector companies, with several PSUs periodically facing similar penalties and subsequently applying for waivers or extensions.

What Happens Next: The Waiver Process

NTPC, REC, and SJVN are now seeking waivers from the imposed penalties. Waiver applications for such compliance penalties are typically reviewed by the exchanges and SEBI, taking into account the specific circumstances cited by the companies, including the government approval bottlenecks for board appointments. Historically, PSUs have had some success in securing waivers or reduced penalties in similar cases, though outcomes vary based on the specifics of each situation.

Key Data on the Penalty

Company	Regulatory Issue	Penalty Status
NTPC	Non-compliance with SEBI listing regulations	Fined; waiver sought
REC	Non-compliance with SEBI listing regulations	Fined; waiver sought
SJVN	Non-compliance with SEBI listing regulations	Fined; waiver sought

The combined penalty across the three companies exceeds Rs 59 crore.

Conclusion

The Rs 59 crore combined penalty on NTPC, REC, and SJVN highlights the ongoing governance compliance challenges faced by public sector companies operating under SEBI's listing framework while also being subject to government control over board appointments. Investors should monitor the outcome of the waiver applications for clarity on the final financial and governance implications for these companies. Consult a SEBI-registered financial advisor before making any investment decision.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

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FAQs on NTPC, REC and SJVN Penalty

Why were NTPC, REC and SJVN fined by BSE and NSE?

Ans. NTPC, REC, and SJVN were fined a combined total of over Rs 59 crore by BSE and NSE for non-compliance with SEBI's listing regulations, specifically related to corporate governance requirements under the LODR framework.

Why are these companies seeking waivers?

Ans. NTPC, REC, and SJVN are seeking waivers from the penalties by citing government control over their board appointment processes as the reason for the compliance gap, since independent director nominations at public sector undertakings often require government approval.

What is the total penalty amount imposed?

Ans. The combined penalty imposed on NTPC, REC, and SJVN by BSE and NSE exceeds Rs 59 crore.

What is SEBI's LODR regulation?

Ans. SEBI's Listing Obligations and Disclosure Requirements (LODR) regulations set corporate governance standards for listed companies in India, including requirements around board composition, the proportion of independent directors, and disclosure practices.

Will the penalties on NTPC, REC and SJVN be waived?

Ans. The outcome of the waiver applications has not yet been determined. Exchanges and SEBI will review the companies' specific circumstances, including the government approval bottlenecks cited, before deciding on the waiver requests.